JAKARTA - Macroprudential policies are predicted to be relaxed in line with the trend of global economic recession.

According to PT Pemeringkat Efek Indonesia (Pefindo) economist Fikri C. Permana, liquidity relaxation policies will respond to the ongoing trade war that keeps escalating in monetary and macroprudential terms.

“In addition, financial market efficiency will be encouraged,” Mr Permana told Bisnis.com, Tuesday (13/8).

In fiscal terms, Mr Permana asserted that the government has to be wise in State Budget expenditure as well as astute in encouraging state revenue, both from taxes and non-taxes.

The trade and global currency wars, said Mr Permana, triggers concerns resulted from the inverted yield curve signal. Primarily, it is feared that a global recession will take place in the next one to two years.

“As a consequence, our premium risk will be at a high point in the eyes of global investors,” said Mr Permana. Amid the escalating trade and global currency wars, he is still confident that Indonesia’s economy will grow above 5% at the end of the year. (MS)